Capacity utilisation and profitability: A decomposition of short-run profit efficiency

The principal aim of this paper is to measure the amount by which the profit of a multi-input, multi-output firm deviates from maximum short-run profit, and then to decompose this profit gap into components that are of practical use to managers. In particular, our interest is in the measurement of the contribution of unused capacity, along with measures of technical inefficiency, and allocative inefficiency, in this profit gap. We survey existing definitions of capacity and, after discussing their shortcomings, we propose a new ray economic capacity measure that involves short-run profit maximisation, with the output mix held constant. We go on to describe how the gap between observed profit and maximum profit can be calculated and decomposed using linear programming methods. The paper concludes with an empirical illustration, involving data on 28 international airline companies. The empirical results indicate that these airline companies achieve profit levels which are on average US$815m below potential levels, and that 70% of the gap may be attributed to unused capacity. (C) 2002 Elsevier Science B.V. All rights reserved.

Expert system application on preliminary design of water retaining structures

Design of liquid retaining structures involves many decisions to be made by the designer based on rules of thumb, heuristics, judgment, code of practice and previous experience. Various design parameters to be chosen include configuration, material, loading, etc. A novice engineer may face many difficulties in the design process. Recent developments in artificial intelligence and emerging field of knowledge-based system (KBS) have made widespread applications in different fields. However, no attempt has been made to apply this intelligent system to the design of liquid retaining structures. The objective of this study is, thus, to develop a KBS that has the ability to assist engineers in the preliminary design of liquid retaining structures. Moreover, it can provide expert advice to the user in selection of design criteria, design parameters and optimum configuration based on minimum cost. The development of a prototype KBS for the design of liquid retaining structures (LIQUID), using blackboard architecture with hybrid knowledge representation techniques including production rule system and object-oriented approach, is presented in this paper. An expert system shell, Visual Rule Studio, is employed to facilitate the development of this prototype system. (C) 2002 Elsevier Science Ltd. All rights reserved.

Strategic maintenance management

The approach to maintenance management has changed over the last one hundred years. Over the last few years, the Reliability Engineering and Risk Management Group (RERMG) at the University of Queensland has developed an approach called the strategic maintenance management (SMM) approach. The paper outlines the approach and contrasts it with the current approaches. It then discusses the industry-university partnership in the implementation of this approach and the current activities at the University of Queensland to assist industry in the implementation of the SMM approach.

New product warranty: A literature review

Warranty is an important element of marketing new products as better warranty signals higher product quality and provides greater assurance to customers. Servicing warranty involves additional costs to the manufacturer and this cost depends on product reliability and warranty terms. Product reliability is influenced by the decisions made during the design and manufacturing of the product. As such warranty is very important in the context of new products. Product warranty has received the attention of researchers from many different disciplines and the literature on warranties is vast. This paper carries out a review of the literature that has appeared in the last ten years. It highlights issues of interest to manufacturers in the context of managing new products from an overall business perspective. (C) 2002 Elsevier Science B.V. All rights reserved.

Linguistic evaluation method for the environmental assessment of infrastructure projects

A soft linguistic evaluation method is proposed for the environmental assessment of physical infrastructure projects based on fuzzy relations. Infrastructure projects are characterized in terms of linguistic expressions of 'performance' with respect to factors or impacts and the 'importance' of those factors/impacts. A simple example is developed to illustrate the method in the context of three road infrastructure projects assessed against five factors/impacts. In addition, a means to include hard or crisp factors is presented and illustrated with respect to a sixth factor.

Managing new product development in the Chinese steel industry: An empirical investigation

This study explores several important aspects of the management of new product development (NPD) in the Chinese steel industry. Specifically it explores NPD success factors, the importance of management functions to new product success and measures of new product success from the perspective of the industry's practitioners. Based on a sample of 190 industrial practitioners from 18 Chinese steel companies, the study provides a mixed picture as China makes the transition from a centrally-controlled to market-based economy. On one hand, respondents ranked understanding users' needs as the most important factor influencing the performance of the new products. Further, formulating new product strategy and strengthening market research are perceived as the most important managerial functions in NPD. However, technical performance measures are regarded as more important and are more widely used in industry than market-based or financial measures of success.

Comments on "Maintenance policies with two-dimensional warranty"

Chen and Popova [Res. Engng Syst. Saf. 77 (2002) 61] discuss maintenance policies for items sold with a two-dimensional warranty. However, their paper fails to give a proper review of the literature and it also contains errors. In this note we first review the relevant literature and then comment on the errors in their analysis. (C) 2003 Elsevier Ltd. All rights reserved.

A modified Weibull distribution

A new lifetime distribution capable of modeling a bathtub-shaped hazard-rate function is proposed. The proposed model is derived as a limiting case of the Beta Integrated Model and has both the Weibull distribution and Type I extreme value distribution as special cases. The model can be considered as another useful 3-parameter generalization of the Weibull distribution. An advantage of the model is that the model parameters can be estimated easily based on a Weibull probability paper (WPP) plot that serves as a tool for model identification. Model characterization based on the WPP plot is studied. A numerical example is provided and comparison with another Weibull extension, the exponentiated Weibull, is also discussed. The proposed model compares well with other competing models to fit data that exhibits a bathtub-shaped hazard-rate function.

Warranty and optimal reliability improvement through product development

For products sold with warranty, the warranty servicing cost can be reduced by improving product reliability through a development process. However, this increases the unit manufacturing cost. Optimal development must achieve a trade-off between these two costs. The outcome of the development process is uncertain and needs to be taken into account in the determination of the optimal development effort. The paper develops a model where this uncertainty is taken into account. (C) 2003 Elsevier Ltd. All rights reserved.

Repair-replace strategies for two-dimensional warranty policies

For repairable items sold with free replacement warranty, the actions available to the manufacturer to rectify failures under warranty are to (1) repair the failed item or (2) replace it with a new one. A proper repair-replace strategy can reduce the expected cost of servicing the warranty. In this paper, we study repair-replace strategies for items sold with a two-dimensional free replacement warranty. (C) 2003 Elsevier Ltd. All rights reserved.

Study of n-fold Weibull competing risk model

This paper deals with an n-fold Weibull competing risk model. A characterisation of the WPP plot is given along with estimation of model parameters when modelling a given data set. These are illustrated through two examples. A study of the different possible shapes for the density and failure rate functions is also presented. (C) 2003 Elsevier Ltd. All rights reserved.

The tree cut and merge algorithm for estimation of network reliability

This article presents Monte Carlo techniques for estimating network reliability. For highly reliable networks, techniques based on graph evolution models provide very good performance. However, they are known to have significant simulation cost. An existing hybrid scheme (based on partitioning the time space) is available to speed up the simulations; however, there are difficulties with optimizing the important parameter associated with this scheme. To overcome these difficulties, a new hybrid scheme (based on partitioning the edge set) is proposed in this article. The proposed scheme shows orders of magnitude improvement of performance over the existing techniques in certain classes of network. It also provides reliability bounds with little overhead.

Multicriteria decision making: a case study in the automobile industry

Multi-criteria decision analysis(MCDA) has been one of the fastest-growing areas of operations research during the last decades. The academic attention devoted to MCDA motivated the development of a great variety of approaches and methods within the field. These methods distinguish themselves in terms of procedures, theoretical assumptions and type of decision addressed. This diversity poses challenges to the process of selecting the most suited method for a specific real-world decision problem. In this paper we present a case study in a real-world decision problem arising in the painting sector of an automobile plant. We tackle the problem by resorting to the well-known AHP method and to the MCDA method proposed by Pereira and Fontes (2012) (MMASSI). By relying on two, rather than one, MCDA methods we expect to improve the confidence and robustness of the obtained results. The contributions of this paper are twofold: first, we intend to investigate the contrasts and similarities of the results obtained by distinct MCDA approaches (AHP and MMASSI); secondly, we expect to enrich the literature of the field with a real-world MCDA case study on a complex decision making problem since there is a paucity of applied research work addressing real decision problems faced by organizations.

Multicriteria decision making: a case study in the automobile industry

Multi-criteria decision analysis (MCDA) has been one of the fastest-growing areas of operations research during the last decades. The academic attention devoted to MCDA motivated the development of a great variety of approaches and methods within the field. These methods distinguish themselves in terms of procedures, theoretical assumptions and type of decision addressed. This diversity poses challenges to the process of selecting the most suited method for a specific real-world decision problem. In this paper we present a case study in a real-world decision problem arising in the painting sector of an automobile plant. We tackle the problem by resorting to the well-known AHP method and to the MCDA method proposed by Pereira and Fontes (2012) (MMASSI). By relying on two, rather than one, MCDA methods we expect to improve the confidence and robustness of the obtained results. The contributions of this paper are twofold: first, we intend to investigate the contrasts and similarities of the results obtained by distinct MCDA approaches (AHP and MMASSI); secondly, we expect to enrich the literature of the field with a real-world MCDA case study on a complex decision making problem since there is a paucity of applied research work addressing real decision problems faced by organizations.

Análise de desempenho de algoritmos de otimização para extração de parâmetros em modelos semicondutores de potência

Apresenta-se nesta tese uma revisão da literatura sobre a modelação de semicondutores de potência baseada na física e posterior análise de desempenho de dois métodos estocásticos, Particle Swarm Optimizaton (PSO) e Simulated Annealing (SA), quando utilizado para identificação eficiente de parâmetros de modelos de dispositivos semicondutores de potência, baseado na física. O conhecimento dos valores destes parâmetros, para cada dispositivo, é fundamental para uma simulação precisa do comportamento dinâmico do semicondutor. Os parâmetros são extraídos passo-a-passo durante simulação transiente e desempenham um papel relevante. Uma outra abordagem interessante nesta tese relaciona-se com o facto de que nos últimos anos, os métodos de modelação para dispositivos de potência têm emergido, com alta precisão e baixo tempo de execução baseado na Equação de Difusão Ambipolar (EDA) para díodos de potência e implementação no MATLAB numa estratégia de optimização formal. A equação da EDA é resolvida numericamente sob várias condições de injeções e o modelo é desenvolvido e implementado como um subcircuito no simulador IsSpice. Larguras de camada de depleção, área total do dispositivo, nível de dopagem, entre outras, são alguns dos parâmetros extraídos do modelo. Extração de parâmetros é uma parte importante de desenvolvimento de modelo. O objectivo de extração de parâmetros e otimização é determinar tais valores de parâmetros de modelo de dispositivo que minimiza as diferenças entre um conjunto de características medidas e resultados obtidos pela simulação de modelo de dispositivo. Este processo de minimização é frequentemente chamado de ajuste de características de modelos para dados de medição. O algoritmo implementado, PSO é uma técnica de heurística de otimização promissora, eficiente e recentemente proposta por Kennedy e Eberhart, baseado no comportamento social. As técnicas propostas são encontradas para serem robustas e capazes de alcançar uma solução que é caracterizada para ser precisa e global. Comparada com algoritmo SA já realizada, o desempenho da técnica proposta tem sido testado utilizando dados experimentais para extrair parâmetros de dispositivos reais das características I-V medidas. Para validar o modelo, comparação entre resultados de modelo desenvolvido com um outro modelo já desenvolvido são apresentados.